The Public Utilities Commission is considering approving a contract between Hawaii island’s HECO-owned utility (HELCO) and a partnership known as Aina Koa Pono (AKP). Its decision is expected within the next several weeks.

Why should rate payers on Oahu care about this proposed contract?

Because if approved, Oahu residents would pay about 90 percent of the cost — even though the very expensive biofuel would be used only on the Big Island.

The contract between HELCO and AKP calls for HELCO — and you — to purchase fuel from AKP at about $200 per barrel. Today, a barrel of oil costs about half that: $107. If this contract is approved, there will be a surcharge, to cover the difference, on your monthly electricity bill.

Furthermore, note that whenever oil has reached about $120 per barrel, world economies have slowed precipitously. Many have gone into recession. This tells us that there is a natural economic "stop" in place that keeps oil from getting anywhere near $200 per barrel.

And yet, HELCO/HECO is trying to guarantee AKP a fixed price of $200 per barrel.

While a discussion of using renewable energy, rather than primarily buying foreign oil, is warranted, when the cost of those renewables is so unrealistically high that any buyer would look for other alternatives, then that discussion has reached the point of absurdity.

What lower-cost alternatives exist for the island of Hawaii?

» The island has significant geothermal resources at the equivalent price of $57 per barrel. Right now, HELCO purchases only about 70 percent of the geothermal power available, meaning there is more geothermal available at well below the equivalent of $200 per barrel.

» HELCO currently purchases power from biofuel and hydroelectric sources that make a reasonable profit at today’s prices, and don’t ask for $200 per barrel. Additional power plants are asking to come on line at today’s prices.

» HECO and HELCO currently buy solar power at prices well below the equivalent of $200 per barrel (in fact, from what we can tell, at less than half that price).

» HECO and HELCO buy wind-generated power for far less than $200 per barrel, with more potential sellers lining up to sell to them.

AKP’s plan has technical issues as well. The process AKP plans to use has never been proven at the scale it is proposing; the proposed yield of source material is many times more than ever grown anywhere. There are also cultural and environmental issues.

Finally, you might ask why Oahu rate payers should pay for power consumed by rate payers on another island. Good question.

The simple answer is that if rate payers on Hawaii island had to bear the burden, there is no way this could be approved. That kind of tells the whole story right there, doesn’t it?

We suggest writing to the Public Utilities Commission if you oppose this contract — hawaii.puc@hawaii.gov — or contacting your state or county lawmakers.

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Richard Ha submitted this on behalf of the Big Island Community Coalition, of which he is a founding member (www.bigislandcommunitycoalition.com). Other founding members include Dave DeLuz Jr., John E.K. Dill, Rockne Freitas, Wallace Ishibashi, Ku‘ulei Kealoha Cooper, Noelani Kalipi, Ka‘iu Kimura, Robert Lindsey, H.M. "Monty" Richards, Marcia Sakai, Lehua Veincent and Bill Walter.